MERC partly allows AEML-D to bid for only 250 MW + 250 MW green-shoe (not full 500 MW) RE-RTC power, on top of the 1000 MW already approved in Case 32/2022
Petition of Adani Electricity Mumbai Limited- Distribution under Section 86(1)(b) read with Section 63 of the Electricity Act, 2003 seeking approval for Long-Term procurement of power 500 MW from grid connected Renewable Energy Power Projects, complemented with Power from any other Source on Round the Clock (RTC) basis, under Tariff-based Competitive Bidding process.
AEML-D sought approval under Section 63/86(1)(b) to procure 500 MW long-term RE power complemented with RTC power from any other source via competitive bidding, to meet future demand growth (mainly from data centres, commercial and EV-charging loads totalling 638 MW cumulative by FY2027) and to enhance RPO compliance, in addition to 1000 MW (500+500 green-shoe) RE-RTC procurement already approved in Case 32 of 2022.
- Petition partly allowed; AEML-D permitted to initiate bidding for only 250 MW + 250 MW green-shoe (not the full 500 MW sought), citing surplus risk in FY2024-25 as demand build-up is gradual
- 10-year PPA tenure deviation accepted (in line with Case 32/2022 precedent) as procurement >7 years qualifies as long-term under MYT Regulations, 2019
- Deviation to evaluate bids on first-year quoted tariff (ignoring CERC escalation indices) rejected; AEML-D directed to use Weighted Average Levelized Tariff per MoP guidelines dated 26 Aug 2022
- AEML-D directed to incorporate MoP's 26 Aug 2022 revised bidding guideline changes (availability norms, penalty, change-in-law, bucket-filling methodology, early commissioning pricing) into bid documents and submit track-change + clean copies to Commission
- RE power procured under this project to count towards AEML-D's RPO targets for respective periods
- AEML-D directed to demonstrate compliance with competitive bidding guidelines at the time of tariff adoption
- AEML-D to revise RfS/PPA bid documents incorporating MoP's 26 Aug 2022 guideline changes (90% availability, 400%-of-shortfall-tariff penalty removed to standard formula, Change in Law rules, sequential bucket-filling, 50% PPA tariff for early single-component commissioning)
- Revised bid documents (track-change + clean copy) to be filed with Commission for information/perusal before tender launch
- Bidding to be evaluated using Weighted Average Levelized Tariff per amended guidelines, not first-year tariff
- At tariff adoption stage, AEML-D must satisfy Commission that competitive bidding guidelines have been duly complied with
- Green-shoe option (250 MW) to be exercised only per conditions tied to ADTPS PPA continuation, consistent with Case 32/2022 order
- AEML-D may approach Commission separately, post-bid discovery, for adoption of tariff for appropriate capacity with detailed justification based on actual demand realization
- • Large upcoming C&I loads (data centres, IT parks, commercial/EV charging in Mumbai suburbs) driving this procurement may see new long-term RE-RTC supply options from AEML-D, but only for a reduced 250+250 MW block, so full contracted capacity may not materialize as originally planned
- • C&I consumers demanding green power could still pursue Open Access or rooftop RE independently, as Commission flagged competing distribution licensee and OA/rooftop risks that could disrupt AEML-D's demand assumptions
- • RE developers bidding into this tender face a 10-year PPA (not 25 years) and must comply with tightened MoP bidding norms (90% availability, stricter penalties) once AEML-D revises documents
- • RE procured will count toward AEML-D's RPO compliance, indirectly supporting C&I consumers' green energy sourcing needs and potential REC/RPO cost pass-through effects on tariffs
This is a cautionary signal for developers eyeing AEML-D's RE-RTC pipeline: the Commission trimmed the ask by half, reflecting scepticism on speculative data-centre demand materializing on schedule, and firmly rejected tariff-evaluation deviations favoring bidders. C&I buyers should track the revised RfS closely (post MoP Aug-2022 norms) and not assume full 500 MW capacity will clear tender; engage early but structure PPAs/back-up plans (OA, rooftop) given demand uncertainty and competing licensee dynamics in Mumbai.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.